On: For the first time, the Fed is losing money

[phendrenad2]

The FED does not loan money. It gives it away. That's what QE is: The Fed buys bonds for more than they're worth on the open market. This disparity creates excess money in the system that wasn't there before.

[emkemp → phendrenad2]

"The FED does not loan money."

This is quite wrong.

https://www.federalreserve.gov/monetarypolicy/discountrate.h... https://www.federalreserve.gov/monetarypolicy/standing-overn... https://www.federalreserve.gov/monetarypolicy/bank-term-fund...

In addition, the Fed also borrows money.

https://www.federalreserve.gov/monetarypolicy/overnight-reve...